-Using the Above Figure as a Starting Point, a Recession

question 272

Multiple Choice

-Using the above figure as a starting point, a recession in the monetarist model would begin with a

• A) rightward shift in the AD curve.
• B) leftward shift in the AD curve.
• C) leftward shift in the SAS curve.
• D) leftward shift in the LAS curve.

---

Definitions:

Depository Financial Institution

A financial institution legally allowed to accept monetary deposits from consumers, such as banks and credit unions.

Secondary Market

Collection of financial markets in which previously issued securities are traded among investors.

Debenture

Unsecured corporate bond.

Financial Reputation

The perception of a person's or organization's financial integrity and ability to meet monetary obligations, affecting their access to capital.